The Once-Popular Mexican Chain That's Still Hanging On After Bankruptcy
You might recognize On the Border Mexican Grill & Cantina's blocky logo, complete with a tiny lime wedge, and remember the days of sizzling fajitas and chunky, yellow queso in those leather booths. But if you try plugging the name into your GPS these days, you might not get a hit in your city. Heck, you might not even see any locations in your state. At the height of its popularity, this Tex-Mex chain had around 160 locations nationwide, but the good ol' days didn't last forever.
On the Border joined a growing list of chain restaurants struggling to recuperate post-pandemic, fighting to keep up with labor shortages, higher supply costs, and lower in-restaurant foot traffic. The chain was losing money fast and not making enough profit to stay sustainable, so it began shutting down restaurants at the beginning of 2025. Soon after, it officially filed for Chapter 11 bankruptcy (much like these nine other restaurant chains), at which point it was drowning in $19 million of debt and had only 60 locations. And if that isn't enough, according to customers, it's one of the worst Mexican chain restaurants out there. Though things were looking bleak for the chain, it seems that the Tex-Mex restaurant's story isn't over quite yet.
On the Border has a plan for the future, thanks to new ownership
Two months after filing for bankruptcy, On the Border was auctioned off and purchased by Pappas Restaurants, the same group responsible for Pappas Bros. Steakhouse, Pappasito's Cantina, Pappadeaux Seafood Kitchen, and Pappas Bar-B-Q. According to a press release from Restaurant News, the acquisition of the brand "will bring together two iconic Texas-based restaurant brands and expand Pappas' presence in the Tex-Mex category." To save On the Border from disappearing off the face of the earth, Pappas reportedly plans to "enhance On The Border's menu, operations, and guest experience," while also focusing on "strengthen[ing]" and "moderniz[ing]" the brand as a whole.
Though On the Border's number of locations dropped significantly, the chain thrived throughout the early 2000s and into the 2010s. It was opened by three enthusiastic Tex-Mex fans back in 1982, in a small town quite literally located on the border of Texas and Mexico. For decades, the chain has dished out a menu filled with brisket quesadillas, smoky fajitas, and spicy margaritas, even expanding a few locations into South Korea. With new ownership at the helm, this once-popular Mexican chain might just join our next list of lucky restaurant chains that survived bankruptcy.